Gravity Enters Into License and Distribution Agreements for Ragnarok Online 2 in China, Taiwan, Macau and Hong Kong

Business Wire, Jan 10, 2007

SEOUL, South Korea -- Gravity, Co., Ltd. (Nasdaq:GRVY)(the "Company"), an online game developer and publisher, announced that it has entered into license and distribution agreements for Ragnarok Online 2TM (or RO2) in China, Taiwan, Macau and Hong Kong.

The agreement for China has recently been entered into with a subsidiary of The9 Limited in China, which is effective for four years from the commercial service date. The agreement for the licensing of RO2 for Taiwan, Macau and Hong Kong was entered into on November 13, 2006 and the licensee with Gamania Digital Entertainment Co, Ltd., and the term of the agreement is for three years from the commercial service date of the game.

As a result of these agreements, the company is expected to earn in the aggregate, a minimum of US$ 31.5 million for the term of the contracts (through license fees and the minimum guaranteed payments) in the various territories covered and there is a potential for more fees depending on the market acceptance and success of RO2 in these markets.

Mr. Il Young Ryu, Chairman and Chief Executive Officer of Gravity, said, "We have successfully carried out the first closed beta test of RO2 recently and we are hopeful that RO2 will contribute to both the top and the bottom line growth of the Company in 2007. Also, these agreements are important in that our game continue to expand and penetrate the Chinese market, which we believe is one of the most promising online game markets in the world. We will continue to do our best to achieve the most positive result from publishing of our games in China, and Taiwan Macau and Hong Kong with our partners, leading publishers of online games in the territories."

About GRAVITY Co., Ltd.

Based in Korea, Gravity is a developer and distributor of online games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 21 markets. For more information about Gravity, please visit http://www.gravity.co.kr.

Certain statements in this press release may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Please make reference to the Company's filings with the United States Securities and Exchange Commission for further information on what constitutes "forward-looking statements".